Interview Questions.

Q1. What Is Debit Memo And Credit Memo In Ar?

In AR Debit memo is Positive Amount as an example we're selling the product to the customer.

Either we may additionally neglect to feature a freight fees or some other issue.  So at that time we are prepare or Rise the Debit memo it's far elevated the Org stability.(Customer is Under Charged at that point Org prepare Debit memo)

In AR Credit memo is Negative Amount if you billed greater than your customer then Org need to raise Credit memo to present the credit for your Customer, so it's miles lowering the Org stability.

Q2. Primary Ledger Vs Secondary Ledger Vs Reporting Currency.

Primary Ledger Vs Secondary Ledger:

Use secondary ledgers for supplementary functions, along with consolidation, statutory reporting, or changes for one or extra felony entities in the equal accounting setup.

For instance, use a number one ledger for company accounting functions that use the corporate chart of money owed and subledger accounting technique, and use a secondary ledger for statutory reporting functions that use the statutory chart of money owed and subledger accounting technique.

This allows you to hold both a corporate and statutory representation of the same prison entity’s tractions in parallel. 

Reporting Currency Vs Secondary Ledger:

Reporting Currencies are not the same as secondary ledgers. Looking on the 4 C’s that define a ledger, we've a chart of accounts, calendar, accounting method, and foreign money. If you best need a couple of currencies to guide your reporting necessities, use reporting currencies. If you want to account in your facts using distinct calendars, charts of debts, accounting techniques similarly to forex, use a secondary ledger.

Q3. Difference Between Standard Accrual And Standard Cash?

Standard Accrual: 

In case of Standard Accrual, Invoice and Payment Accounting will be there. 

Reason: Traction happens in  stages.

Order goods and get hold of goods(Create PO, Create Receipt, Create Invoice and account it)

Pay the amount for obtained goods inside due time set through the supplier( Pay the invoice and account it)

Since you aren't paying the amount straight away, you need to hold music of the amount wishes to pay to the provider after phase one. You keep this quantity in LiabilityA/C(Cr). After 2d segment, you debit your LiabilityA/C and credit score your CachA/C which indicates your cash go with the flow from your corporation to the supplier.

Standard Cash:

In case of Standard Cash, best charge accounting can be there.

Reason: While shopping an object you pay quantity right now to the provider. So you don’t have any debt to the supplier to report. So there's nothing to file in LiabiltyA/C.

Q4. Difference Between Ap Invoice And Ar Invoices?

AP Invoice: it's far not anything but what quantity going out towards receiving Raw material from the vendor or dealer. (Expenses)

AR Invoice: it's miles nothing however what quantity coming in purchase promoting the product to purchaser or parties (Revenues)

Q5. What Is Key Flex Filed How Many Types In Gl, Ap, Ar, & Fa?

Key Flex area: is used to seize obligatory information of the agencies

In GL three types @Accounting flex subject (obligatory) @Reporting attribute (non-obligatory) @Gl ledger flex subject (non-compulsory)

IN AP No flex fields

IN AR Two kinds @Sales Tax Location flexfield (mandatory)  @Territory Flexfield

In FA Three Flex subject i.E. Category (obligatory), Asset key (mandatory), Locations flex field.

Q6. Explain Flexfield Qualifiers In Gl?

Need to assign qualifiers to individual accounting key flexfield segments to perceive or represent the purpose in COA. 

Natural Account Each Accounting Flexfield shape should comprise handiest one natural account section. When putting in the values, you may indicate the type of account as Asset, Liability, Owner’s Equity, Revenue, or Expense. 

Balancing Account Each structure must incorporate best one balancing phase. Oracle General Ledger guarantees that each one journals stability for every balancing phase. 

Cost Center This segment is required for Oracle Assets. The price center section is used in many Oracle Assets reports and with the aid of Oracle Workflow to generate account numbers. In addition, Oracle Projects and Oracle Purchasing also utilize the price center segment. 

Intercompany General Ledger automatically uses the intercompany segment in the account code aggregate to tune intercompany tractions inside a unmarried ledger. This section has the equal cost set and the same values because the balancing segment.

Q7. How Many Types Of Ar Invoices?

AR TRANSACTIONS (Invoice):

Invoice

Credit memo

Debit memo

Deposit

Guaranty

Chargeback

Bills Receivables.

Q8. What Is Payment Terms And How To Define Payment Terms?

Payables makes use of price terms to mechanically calculate due dates, bargain dates, and cut price quantities for every invoice you input. Payment terms will default from the dealer site. If you need to exchange the payment phrases and the terms you need to apply are not at the list of values, you could outline additional phrases within the Payment Terms window.

Q9. What Is 2 Way, three Way And 4 Way Matching?

Making bills to the suppliers in 3 methods. What ever you have got ordered for the PO we are able to make the  price for the providers in 2-way(we can evaluate  documents PO and Invoice).

Eg:Suppose we Had given PO for 100 gadgets ,for that we are able to acquire invoice for one hundred objects. So that we will make payment for that 100 gadgets.  2) In three-Way we can evaluate three documents  PO+reciept+Invoice Eg:Suppose we've ordered 100 items in PO. But we had acquired best 80 items ,But we had obtained bill for a hundred items. So, we are able to make fee for simplest 80 gadgets 3) IN four-Way we can examine four files PO+Receipt+Invoice+Inspection Eg:Suppose we've got a hundred objects in PO. Suppers ship us 80 items We will do inspection on those objects what ever we've got acquired, If 10 gadgets got damaged. Sooner or later, we're going to make fee to the 70 items only.

Q10. What Is Adjusting Period?

Typically, the closing day of the financial yr is used as an adjusting duration to carry out adjusting and closing journal entries. Once you begin the usage of your accounting calendar, you can't trade its shape to eliminate or upload an adjusting duration. Choosing whether or not to consist of an adjusting duration or now not in your calendar is a completely critical selection. You may have a vast number of adjusting periods.

Q11. How Many Types Of Ap Invoices?

AP INVOICES: 11i bill are there

Regular invoice (9)

Special invoice(2)

Regular Invoice:

Standard invoice

Credit memo

Debit memo

Prepaid invoice

Expense file

Quick bill

Mixed bill

PO default

Withholding Tax invoice

Special Invoice:

Recurring invoice

Interest invoice

Q12. What Is Journal, How Many Types Of Journal?

Journals it's miles used to record the enterprise traction it incorporates debit and credit strains constantly debit must be same to credit. Types of journals are Suspense Journal or Unbalanced Journal, Recurring Journals and Reversal journals.

P2P Process & O2C Process

P2P procedure begin with

Requisitions àRFQàQuotations’àAnalysisàPOàReceivingàInvoicesàPayment.

B. O2C processing 4 high-level tactics i.E. Order, Invoices, Recognize the COGS and Cash Receipt.

Sales orderàBook OderàRelease the OrderàConfirm the OrderàClose the OrderàImport InvoiceàPrint the InvoiceàRevenue RecognitionàDefer the Cost of Goods àenter ReceiptàApply the Receipt.

Q13. Explain Approval Hierarchies In Po?

Approval hierarchies can help you automatically course files for approval. There are two styles of approval hierarchies in Purchasing: position hierarchy and worker/manager relationships.

If an employee/manager relationship is used, the approval routing systems are defined as you enter employees the use of the Enter Person window. In this situation, positions aren't required to be setup.

If you pick out to use role hierarchies, you have to set up positions. Even even though the location hierarchies require extra preliminary effort to installation, they are smooth to preserve and permit you to define approval routing structures that continue to be strong no matter how often man or woman employees leave your company or relocate within it.

Q14. What Is Trlations & Revaluation And Which Level Its Working?

Trlation: It is used to trlate useful forex balances into overseas foreign money balances at the account stage

Revaluation: It is used perceive the unrealized benefit or loss .Which is occurring at the foreign money fluctuation.

Example:

On 01-Dec-2009 

Functional Currency is USD

Foreign Currency is INR. 

Conversion Rate is @

Created invoice for 100 INR, confirmed and accounted. Not Paid.

As per the above magazine traces on 01-Dec-2009, client is prone to pay 200 USD to the provider. 

End of the period, conversion charge has been modified to two.@

So consumer’s legal responsibility gets extended to 250 USD(a hundred*2.Five).

So client suppose to pay 250 USD in preference to 200 USD to the supplier.

This is the authentic liability at the stop of the period and this need to be reflected in purchaser’s General Ledger. Loss 50 USD need to be populated in Loss account. 

Revaluation adjusts these quantities and continues advantage/loss quantities in Unrealized Gain/Loss debts described in Revaluation window.

Q15. What Is Sweep Program? Explain Process Of Sweep Program?

This specific program is run so as to trfer un-accounted invioce to next opened length all through length end remaining of Accounts Payable. In reality you could’t close Payable Period when you have Un-Accounted Invoice in Payables. In order to negotiate (Trfer) these bill to subsequent open duration this software is run. So that the Payable period can be closed.

Q16. What Is Debit Memo And Credit Memo In Ap?

Its poor amount identified by means of Customer and despatched to Supplier.

Ex: Purchase Returns.

Its terrible quantity recognized by using Supplier and despatched to the Customer.

Ex:  TDS Payables.

Q17. Difference Between Standard And Mixed Invoices?

Standard Invoices: Standard Invoice are invoices from a dealer representing an quantity due for goods or offerings purchased. Standard invoices may be either matched to a purchase order or now not matched. Standard invoices should be high-quality amounts.

Mixed Invoices: Mixed Invoices may be matched to both purchase orders and invoices. Mixed invoices could have either fantastic or negative quantities.

Q18. What Is Pre Payment In Ap?

Prepayment is Advance Payment made to supplier by means of Organization or Employee. Later it'll apply against the characteristic debit.

These are two kinds:

Permanent Prepayment

Temporary Prepayment

Q19. What Is Dynamic Insertion?

You can dynamically create new account code combinations whilst entering statistics by means of permitting dynamic insertion inside the Key Flexfield Segments window. The opportunity method for this is, you may require all accounts to be outline manually in the Accounts Combinations window.

Points to Remember:

Dynamic instertion may be enabled or disabled at any time.

You can outline pass validation rules to prevent incorrect account combinations from being created with the aid of dynamic insertion.

If you're defining an Accounting Flexfield for Oracle Projects, you must define your section with the Allow Dynamic Inserts choice set to Yes.

Q20. What Is Security Rules And Cross Validation Rules?

It is used to limit the users from getting into the segments. It will paintings on the duty level.

It is used to limit the stop users from getting into the code mixtures. It will paintings at shape level.